China Stocks Extend Weekly Gain as Rail, Bank Shares Gain

By Bloomberg News -
Apr 19, 2012

China’s stocks rose, extending the
benchmark index’s gains to a third week, on speculation the
government will increase fiscal spending on infrastructure and
ease monetary policy to bolster economic growth.

Rail car makers CSR Corp. and China CNR China Corp. jumped
more than 3 percent after the China Securities Journal reported
railway spending may exceed government targets. Industrial Bank
Co. paced gains for lenders after the same newspaper reported
that a cut in lenders’ reserve-requirement ratios may be a first
option as the government eases monetary policy.

The Shanghai Composite Index rose 0.3 percent to 2,385.57
at 9:49 a.m. local time. The CSI 300 Index added 0.4 percent to
2,607.51, led by industrial and financial companies.

“Investors are quite conflicted now,” said Zhang Han, a
strategist at Guotai Junan Securities Co. “The good news is
there are expectations for a reserve-requirement ratio cut this
weekend after all the noise the entire week. Despite that,
company earnings are not fantastic, in line with the slowing
world economy.”